Kansas City Southern KSU

Kansas City Southern (KCS), incorporated on January 29, 1962, is a holding company. The Company has domestic and international rail operations in North America that are focused on the north/south freight corridor connecting commercial and industrial markets in the central United States with industrial cities in Mexico. Its subsidiaries include The Kansas City Southern Railway Company (KCSR), Kansas City Southern de Mexico, S.A. de C.V. (KCSM), Mexrail, Inc. (Mexrail), KCSM Servicios, S.A. de C.V. (KCSM Servicios), Meridian Speedway, LLC (MSLLC) and Panama Canal Railway Company (PCRC). KCSR serves a 10-state region in the midwest and southeast regions of the United States and has the north/south rail route between Kansas City, Missouri and various ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi and Texas. KCSM operates a commercial corridor of the Mexican railroad system. KCSM's rail lines provide rail access to the United States and Mexico border crossing at Nuevo Laredo, Tamaulipas, the rail freight interchange point between the United States and Mexico. As of December 31, 2016, KCSM served its Mexico's industrial cities and three of its seaports. KCSM also provides rail access to the Port of Lazaro Cardenas on the Pacific Ocean.

Tex-Mex owns a 157-mile rail line extending from Laredo, Texas to the port city of Corpus Christi, Texas, which connects the operations of KCSR with KCSM. As of December 31, 2016, the KCS coordinated rail network (KCSR, KCSM and Tex-Mex) consisted of approximately 6,600 route miles extending from the midwest and southeast portions of the United States south into Mexico. KCSM Servicios provides employee services to KCSM. PCRC operates the Panama Canal Railway, a 47-mile railroad located adjacent to the Panama Canal that provides international container shipping companies with a railway transportation alternative to the Panama Canal. The Company serves various markets, including chemical and petroleum; industrial and consumer products; agriculture and minerals; energy; intermodal, and automotive. Chemical and petroleum sector includes products, such as plastics, other petroleum refined products and miscellaneous chemicals. KCS transports these products to markets in the midwest, southeast and northeast United States and throughout Mexico through interchanges with other rail carriers. The products within the chemicals and plastics channels are used in the automotive, housing and packaging industries, as well as in general manufacturing.

The Company's industrial and consumer products sector includes metals and ores, such as iron, steel, zinc and copper. Higher-end finished products, such as steel coils are used by Mexican manufacturers in automobiles, household appliances, the oil and gas industry, and other consumer goods, which are imported from the United States through land borders and through the seaports served by KCS's rail network. KCS also transports steel coils, plates and pipe from the United States and Mexican-based mini-mills to locations in the United States and Mexico for oil drilling, appliance and automotive applications. This sector also serves paper mills directly and indirectly through its various short-line connections. KCS's rail lines run through the southeast United States timber-producing region. In addition, KCS serves various paper mills in the southeast United States.

The agriculture and minerals sector consists of grain and food products. In the United States, KCS's rail lines receive and originate shipments of grain and grain products for delivery to feed mills, food and industrial consumers in the United States and Mexico. The energy sector includes coal, frac sand, petroleum coke and crude oil. KCS transports petroleum coke from refineries in the United States to cement companies in Mexico, as well as to vessels for international distribution through the Pabtex export terminal located in Port Arthur, Texas. The intermodal freight sector consists of hauling freight containers or truck trailers on behalf of steamship lines, motor carriers and intermodal marketing companies with rail carriers serving as long-distance haulers. KCS serves and supports the United States and Mexican markets, as well as cross border traffic between the United States and Mexico. The Company also provides service to customers over its line from Dallas through the Meridian Speedway. KCS provides rail transportation to every facet of the automotive industry supply chain, including automotive manufacturers, assembly plants and distribution centers throughout North America. In addition, KCS transports finished vehicles imported and exported to and from Asia through a distribution facility at the Port of Lazaro Cardenas.

The Company competes with BNSF Railway Company, Union Pacific Railroad Company and Grupo Mexico S.A.B. de C.V.